ArabFinance: Holding Company for Food Industries (HCFI), the mother company of Middle Egypt Flour Mills Company (CEFM), is considering launching a tender to select a contractor to establish a plastic bag factory for its subsidiary, Al Mal News reported.
HCFI owns 51.10% of Middle Egypt Flour Mills’ capital, while Al Ahly Financial Investment Management and Middle Egypt Flour Mills’ workers' union own 26.6% and 6.35%, respectively, and the remaining stake is for free trades.
The new plastic bag plant will create a complementary industry to the activity of Middle Egypt Flour Mills. It will manufacture empty plastic bags to meet the company’s needs, and the rest will be sold with an aim to reduce costs for the company and support its revenues.
The factory will have a production capacity of 33 million sacks annually.
Earlier, HCFI launched a tender to establish the same plant and the tender was awarded to the Austrian Starlinger Group, the world's leading supplier of machinery for producing woven plastic packaging, plastic recycling and refinement.
The deal was canceled due to legal issued between the Egyptian and the Austrian parties.
Middle Egypt Flour Mills posted a slight year-on-year increase in its net profit in the second half of 2020, recording EGP 47.5 million, compared to EGP 47 million in the prior-year period.
The listed firm, a member of the Holding Company for Food Industries, is engaged in the manufacture, trade, import, export, packaging, warehousing, and distribution of grains and related products.